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January 26, 2024

Maximizing 2023 Contributions 

Financial Planning Committee

Most of us are now fully immersed in 2024 and are focused on the year ahead. However, as tax season approaches, it is a good time to look back at 2023 to ensure that you maximized your 2023 contributions and tax benefits from savings vehicles that are still available to you. 

TRADITIONAL IRAS: 

You have until the tax filing deadline (April 15, 2024) to complete your 2023 Traditional IRA contributions. By making contributions to your Traditional IRA, you may be able to lower your 2023 tax liability.

If your filing status is single or head of household, you can fully deduct your IRA contribution up to $6,500 in 2023 if your modified adjusted gross income (MAGI) is $73,000 or less. If you are married and filing a joint return, you can fully deduct up to $6,500 in 2023 if your MAGI is $116,000 or less. Note that these figures assume you have access to a retirement plan at work. For those age 50 or older, the maximum contribution is $7,500. 

If you are not covered by an employer plan but your spouse is, and you file a joint return, your deduction is limited if your MAGI is $218,000 to $228,000 and eliminated if your MAGI exceeds $228,000. Single filers, head-of-household filers, and married joint filers who are not covered by an employer plan can generally deduct the full amount of their contributions regardless of their income. 

ROTH IRAS: 

You have until the tax filing deadline (April 15, 2024) to complete your 2023 Roth IRA contributions. 

If your filing status is single or head of household, you can contribute the full $6,500 to a Roth IRA if your MAGI is $138,000 or less. And if you are married and filing a joint return, you can make a full contribution if your MAGI is $218,000 or less. Contributions cannot exceed 100% of your earned income. For those age 50 or older, the maximum contribution is $7,500. 

HSAS: 

You have until the tax filing deadline (April 15, 2024) to complete your 2023 Health Savings Account contributions. By making contributions to your HSA, you may be able to lower your 2023 tax liability. 

If your tax filing status is single, you can contribute a maximum of $3,850 to your HSA in 2023. And if you are married and filing a joint return, you can contribute a maximum of $7,750 to your HSA in 2023. 

If you are 55 and older, you can make catch-up contributions to your HSA for an additional $1,000. 

JNBA is not an accountant and no portion of the above should be construed as accounting advice. All accounting issues should be addressed with an accounting professional of your choosing.

Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors, LLC.

Please see important disclosure information at jnba.com/disclosure

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